In 2025, crude oil prices dropped nearly 20% to the low $60s due to global supply increases and demand concerns. Forecasters predict a bearish outlook for 2026, with Brent oil expected to average $55 per barrel. This oversupply trend could lead to oil prices plummeting below $50, sparking industry consolidation.

Lower oil prices are likely to drive consolidation in the oil sector in 2026. Major oil companies are expected to focus on gas-fueled growth opportunities, such as gas-fired power plants for AI data centers. ExxonMobil and Chevron have been active in acquisitions, positioning themselves for growth through mergers and strategic investments.

Expectations for 2026 suggest increased consolidation among smaller oil stocks and a shift towards natural gas investments. Energy companies are exploring opportunities in gas-fired power plants and data centers to diversify revenue streams. Lower oil prices may lead to another wave of mergers and acquisitions, reshaping the industry landscape.

Oil companies are eyeing investments in gas-fired power plants and data centers as growth drivers in 2026. Projects like ExxonMobil’s collaboration with NextEra Energy to develop a power plant with carbon capture technology illustrate this trend. These strategic investments could provide more stable earnings compared to traditional oil production operations.

Despite the decline in oil prices, 2026 could present opportunities for growth in gas-related projects for energy companies. The market is shifting towards cleaner energy sources, with a focus on gas-fired power plants and AI data centers. Expectations for consolidation and strategic investments signal a changing landscape for the oil and gas industry.

Read more at Yahoo Finance: 3 Bold Oil Market Predictions for 2026